Employers Holdings (EIG) vs. Montpelier Re Holdings (MRH) Critical Review

by | Oct 20, 2017 | Work Related Injuries | 0 comments

Employers Holdings (NYSE: EIG) and Montpelier Re Holdings (NYSE:MRH) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent recommendations for Employers Holdings and Montpelier Re Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Employers Holdings 1 1 0 0 1.50
Montpelier Re Holdings 0 0 0 0 N/A

Employers Holdings presently has a consensus target price of $36.00, suggesting a potential downside of 22.91%. Given Employers Holdings’ higher probable upside, equities analysts clearly believe Employers Holdings is more favorable than Montpelier Re Holdings.

Dividends

Employers Holdings pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. Montpelier Re Holdings does not pay a dividend. Employers Holdings pays out 18.6% of its earnings in the form of a dividend. Employers Holdings has raised its dividend for 7 consecutive years.

Institutional and Insider Ownership

77.3% of Employers Holdings shares are held by institutional investors. 4.0% of Employers Holdings shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Employers Holdings and Montpelier Re Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Employers Holdings 13.72% 10.25% 2.32%
Montpelier…